Top tips for parents who are considering helping their kids onto the property ladder

Parents are pushing themselves beyond their financial limits in order to help their children onto the property ladder.  

That’s according to new research released that shows spiralling housing costs are hitting the bank of mum and dad more than ever – with the average sum being loaned or gifted to help adult children to buy their first home rising to £18,500. 

Furthermore, one in seven parents who have helped out say they are now in debt to the tune of an average £13,000.

The survey commissioned by property law experts Slater & Gordon also showed that despite one in six parents calling the money a loan, less than half expect to have the full sum returned. 

Furthermore, one in five parents whose children know they’re in debt say their children are not grateful.

Almost a third say helping their kids out has reduced their financial security, with close to one in ten saying the financial burden has caused stress and anxiety. Three quarters had to use their savings, one in eight cut down on spending, one in ten cash in investments. Around one in 20 sold possessions, re-mortgaged their house, took on extra jobs and borrowed money on credit cards or loans.

The study also saw 80% admit they did not get legal advice before contributing and only one in ten got a contract drawn up.

So what should you consider if lending money to your children for a deposit?